Question

1.invoice goods to Sanjay rupees 60000
2.Sanjay return goods of rupees 10000
3.Sanjay become insolvent recovered only 50 paise in a Rupee as final settlement from him..
Pls give journal entry of 3rd adjustment..with perfect narration plss.. ​

Answer 1

Answer:

Bad-debt a/c debit Rs 25000 Bank a/c debit Rs 25000

Sanjay a/c credit Rs 50000.

(Being out of Rs 50000 recoverable from sanjay, 50 paise in Rupees received Rs 25000 out of Rs 50000)

Explanation:

Good Sold Rs 60000

Less

Return    Rs 10000

Balance

Receivable    Rs 50000

50 paise

received         Rs 25000 ( Rs 50000 X 0.50 )